Industry guide
Engineering Goods Export Guide
India's largest merchandise export sector at
Industry guide
India's largest merchandise export sector at
By Aaryan Kakani · · 13 min read
Engineering goods constitute India's single largest merchandise export category at approximately 07 billion annually, accounting for roughly 25% of India's total goods exports. The sector spans thousands of product lines from basic iron and steel articles to sophisticated CNC machines, power generation equipment, and defence platforms. India ranks among the top five global suppliers in several sub-categories including castings, forgings, hand tools, and auto components.
The sector is driven by a deep manufacturing base, competitive labour costs, raw material availability (India is a major steel and aluminium producer), and a growing reputation for precision engineering. Government initiatives like Make in India, PLI for capital goods, and dedicated engineering SEZs have further strengthened export competitiveness.
Key sub-sectors
| Sub-sector | Typical products | Major hubs |
|---|---|---|
| Industrial machinery | CNC machines, textile machinery, printing presses, food processing equipment | Pune, Coimbatore, Bengaluru |
| Hand tools & hardware | Spanners, wrenches, pliers, screwdrivers, builders' hardware | Jalandhar, Ludhiana, Nagpur |
| Fasteners | Bolts, nuts, screws, rivets, washers, threaded rods | Ludhiana, Rajkot, Pune |
| Castings & forgings | Iron castings, steel forgings, aluminium die castings, investment castings | Rajkot, Coimbatore, Belgaum, Kolhapur |
| Pumps & valves | Centrifugal pumps, submersible pumps, gate valves, ball valves, butterfly valves | Coimbatore, Ahmedabad, Rajkot |
| Bearings | Ball bearings, roller bearings, needle bearings, tapered roller bearings | Jaipur, Pune, Bengaluru |
| Construction equipment | Excavators, cranes, concrete mixers, road rollers, scaffolding | Pune, Jamshedpur, Pithampur |
| Railway equipment | Wheels, axles, coaches, signalling equipment, track components | Jamshedpur, Kolkata, Bangalore |
| Defence equipment | Armoured vehicles, artillery components, naval equipment, small arms parts | Pune, Hyderabad, Chennai |
Major manufacturing hubs
Ludhiana
Hand tools, fasteners, bicycle parts, sewing machine parts, auto components
Rajkot
Castings, forgings, CNC machined parts, submersible pumps, bearings
Coimbatore
Pumps, motors, wet grinders, textile machinery, foundry products
Pune
Heavy machinery, auto components, defence equipment, compressors
Jamshedpur
Steel products, construction equipment, railway components, heavy vehicles
Engineering goods span multiple HS chapters. The core chapters that define this sector are 73 through 76 (base metal articles) and 82 through 83 (tools and miscellaneous articles). Many engineering products also fall under chapters 84 (machinery) and 85 (electrical machinery), but the tariff lines below represent the sector's backbone.
Key tariff chapters
| Chapter | Description | Key tariff lines |
|---|---|---|
| 73 | Articles of iron or steel | 7307 (fittings), 7308 (structures), 7318 (fasteners), 7325 (castings), 7326 (other articles) |
| 74 | Copper and articles | 7407 (bars/rods), 7411 (tubes), 7412 (fittings), 7419 (other articles) |
| 75 | Nickel and articles | 7505 (bars/rods), 7507 (tubes), 7508 (other articles) |
| 76 | Aluminium and articles | 7604 (bars/profiles), 7608 (tubes), 7610 (structures), 7616 (other articles) |
| 82 | Tools, cutlery, spoons & forks | 8202 (saws), 8203 (pliers), 8204 (spanners), 8205 (hand tools), 8207 (interchangeable tools) |
| 83 | Miscellaneous base metal articles | 8301 (locks), 8302 (mountings/fittings), 8306 (bells/frames), 8311 (welding wire/rods) |
Indian engineering goods reach over 200 countries. The top markets account for roughly 60% of export value, with the United States being the single largest buyer followed by the European Union as a bloc.
| Market | Key products | Compliance focus |
|---|---|---|
| USA | Iron/steel articles, castings, hand tools, machinery parts, fasteners | ASME codes, ANSI standards, FDA (food-contact), Section 232 tariffs on steel/aluminium |
| European Union | Machinery, castings, forgings, pumps, valves, bearings | CE marking, PED, Machinery Directive, CBAM reporting, REACH (for coatings) |
| UAE | Construction materials, pipes, fittings, structural steel, switchgear | ESMA quality marks, Dubai Municipality approvals, India-UAE CEPA benefits |
| United Kingdom | Machinery, precision components, castings, hand tools | UKCA marking (replacing CE), UK PED, post-Brexit regulatory divergence |
| Saudi Arabia | Oil & gas equipment, pumps, valves, construction equipment, pipes | SASO conformity, ARAMCO vendor approval, API standards for oil & gas |
| ASEAN | Machinery, iron/steel articles, tools, construction equipment | India-ASEAN FTA tariff concessions, local standards vary by country |
Engineering goods buyers, especially in regulated markets, require a range of certifications before qualifying a supplier. The specific mix depends on the product category and destination market, but the following certifications are the most commonly demanded.
Core certifications
| Certification | Scope | Relevant for |
|---|---|---|
| ISO 9001:2015 | Quality management system | All engineering goods. Virtually mandatory for export |
| ISO 14001:2015 | Environmental management system | Required by EU/US OEM buyers, increasingly by GCC markets |
| ASME (U, S, R stamps) | Pressure vessels, boilers, power piping | USA, Canada, Middle East oil & gas projects |
| PED 2014/68/EU | Pressure Equipment Directive | Any pressure equipment sold in the EU (vessels, piping, safety accessories) |
| Machinery Directive 2006/42/EC | Safety of machinery | All machinery exported to EU/EEA |
| API standards | Oil & gas industry standards (API 6A, 6D, 600, 602, 607) | Valves, wellhead equipment, pipeline components for oil & gas |
| ISO 45001 | Occupational health & safety | Large OEM buyer requirements, project exports |
The CE mark is the gateway to the European market for machinery. It signifies that your product meets EU essential health and safety requirements (EHSRs). Without it, your machinery cannot legally be placed on the EU/EEA market. The primary directive for engineering goods is the Machinery Directive 2006/42/EC, which is being replaced by the new Machinery Regulation (EU) 2023/1230 effective from January 2027.
CE marking process
Essential documentation for CE
If your engineering products are intended for use in potentially explosive atmospheres (oil refineries, chemical plants, grain silos, mines, paint shops) they must comply with the ATEX Directive 2014/34/EU. This applies to electrical and non-electrical equipment, protective systems, and components.
ATEX equipment categories
Category 1
Very high level of protection. Equipment for zones 0/20 (continuous explosive atmosphere)
Category 2
High level of protection. Equipment for zones 1/21 (likely explosive atmosphere)
Category 3
Normal level of protection. Equipment for zones 2/22 (unlikely but possible explosive atmosphere)
ATEX certification requires involvement of a Notified Body for Category 1 and 2 equipment. Category 3 equipment can be self-certified with internal production control. Indian engineering exporters manufacturing pumps, valves, motors, lighting, or instrumentation for petrochemical and mining applications must pay close attention to ATEX compliance.
Engineering goods with potential military or strategic applications are subject to India's export control regime. The government has been liberalising defence exports (target: $5 billion by 2025) while maintaining strict controls on dual-use technologies. Exporters must navigate the SCOMET framework carefully.
SCOMET list. What it covers
Category 0
Nuclear materials, facilities, equipment
Category 1
Toxic chemicals and precursors
Category 2
Micro-organisms and toxins
Category 3
Munitions (conventional arms, ammunition, military vehicles)
Category 4
Nuclear-related dual-use equipment and technology
Category 5
Dual-use items (materials processing, electronics, computers, telecom, sensors)
Category 6
Missile-related equipment and technology
Category 7
Chemical & biological weapons precursors (additional controls)
Category 8
Catch-all for items not listed but with WMD end-use concerns
Export licensing process
Wassenaar Arrangement alignment
India joined the Wassenaar Arrangement in December 2017, strengthening its export control credentials. This means India's SCOMET list is aligned with the Wassenaar Dual-Use Goods and Technologies List. Engineering goods covered include precision machine tools (beyond certain accuracy thresholds), specific alloys and composites, numerically controlled equipment exceeding defined parameters, and certain types of bearings, valves, and pumps designed for extreme conditions.
The Engineering Export Promotion Council of India (EEPC India), set up by the Ministry of Commerce & Industry, is the apex trade body for the Indian engineering sector. EEPC India membership is essential for engineering goods exporters. It provides the RCMC (Registration-Cum-Membership Certificate) required to access export incentives and DGFT schemes.
EEPC membership benefits
Membership categories & fees
Manufacturer-exporter
Annual fee based on export turnover slab (Rs 5,000 to Rs 50,000)
Merchant-exporter
Annual fee based on export turnover slab
Service provider
Testing labs, logistics providers, consultants in engineering exports
Validity
RCMC valid for 5 years, renewable online through DGFT portal
International buyers of engineering goods (especially in infrastructure, oil & gas, power, and defence sectors) require rigorous quality documentation beyond basic ISO certification. Understanding the inspection and testing ecosystem is essential for qualifying as an approved vendor.
Quality documentation requirements
| Document | Standard | Purpose |
|---|---|---|
| Mill Test Certificate (MTC) | EN 10204 Type 3.1 / 3.2 | Chemical composition and mechanical properties of raw material |
| Third-party inspection certificate | Per buyer ITP (Inspection & Test Plan) | Independent verification of quality at manufacturer's works |
| Calibration certificates | ISO/IEC 17025 (NABL) | Traceability of measuring instruments to national/international standards |
| NDT reports | ASNT Level II/III | Radiography, ultrasonic, magnetic particle, dye penetrant testing |
| Performance test certificate | Product-specific (IS, ASTM, DIN) | Functional testing (pressure test, load test, flow test) |
NABL accreditation
The National Accreditation Board for Testing and Calibration Laboratories (NABL) is India's accreditation body under the Quality Council of India. NABL accreditation is critical because:
India's network of Free Trade Agreements and Comprehensive Economic Partnership Agreements offers significant tariff advantages for engineering goods exporters. The key is understanding the Rules of Origin and obtaining the correct Certificate of Origin for each agreement.
Key FTAs for engineering goods
| Agreement | Engineering goods coverage | RoO criteria | CoO form |
|---|---|---|---|
| India-Japan CEPA | Zero/reduced duty on machinery, tools, iron & steel articles, bearings | CTH or 35-40% value addition | CoO (IJCEPA) |
| India-Korea CEPA | Reduced duty on auto parts, machinery, steel products | CTH or 35% RVC | CoO (IKCEPA) |
| India-UAE CEPA | Preferential access for steel articles, aluminium, machinery, tools | 35% value addition or CTH | CoO (IUCEPA) |
| India-ASEAN FTA | Tariff concessions on engineering products across 10 ASEAN nations | 35% RVC + CTH | Form AI |
| India-Australia ECTA | Phased tariff elimination on capital goods, steel, aluminium articles | Product-specific rules | CoO (IndAus ECTA) |
Engineering goods exporters can access multiple incentive schemes run by DGFT, CBIC, and RBI. The sector benefits disproportionately from capital goods-related schemes like EPCG, given the heavy machinery requirements for manufacturing.
Available schemes
| Scheme | Benefit | Engineering goods relevance |
|---|---|---|
| RoDTEP | 0.5-4.3% of FOB value as duty credit scrips | Covers embedded taxes on inputs (fuel, electricity, transport) |
| Duty Drawback | Refund of customs + excise duty paid on imported/domestic inputs | Useful when not using Advance Authorisation |
| EPCG | Zero duty import of capital goods against export obligation (6x CIF value in 6 years) | Highly relevant. Engineering units need CNC machines, testing equipment, foundry equipment |
| Advance Authorisation | Duty-free import of raw materials for export production | Import special steel, alloys, copper, nickel duty-free |
| Interest Subvention | 3% (MSME) / 2% (others) interest subsidy on pre/post-shipment credit | Reduces working capital cost for high-value orders with long production cycles |
| PLI for Capital Goods | 4-6% incentive on incremental sales for 5 years | Covers machine tools, textile machinery, food processing machinery, and other segments |
Export finance options
Engineering goods often involve large order values and long production cycles, making export finance critical:
Engineering goods present unique logistics challenges. Heavy weight, irregular dimensions, corrosion susceptibility, and the need for specialised handling equipment. Proper packaging prevents transit damage claims and ensures goods arrive in working condition.
Packaging requirements
Shipping modes for heavy cargo
FCL containers
Standard 20'/40' for palletised goods, high-cube for voluminous items
Flat-rack containers
For over-dimensional cargo. Large machinery, structural steel, heavy castings
Open-top containers
For top-loading with cranes. Heavy equipment exceeding container door height
Breakbulk
For very heavy or oversized items (turbines, transformers, vessels). Loaded directly onto ship
RoRo (Roll-on/Roll-off)
For wheeled equipment. Construction machines, vehicles, trailers
Project exports
For turnkey project exports (power plants, factories, infrastructure), special provisions apply:
Use this checklist to verify compliance before shipping engineering goods. Not all items apply to every product. Adapt based on your specific goods and destination market.
Pre-export compliance
Shipping & documentation
Post-shipment
The core chapters are 73 (iron & steel articles), 74 (copper articles), 75 (nickel articles), 76 (aluminium articles), 82 (tools, cutlery), and 83 (miscellaneous base metal articles). Machinery falls under chapters 84-85. The exact 8-digit ITC(HS) code depends on the specific product. Get it right to avoid duty miscalculation and FTA issues.
Yes. Any machinery placed on the EU/EEA market must carry the CE mark under the Machinery Directive 2006/42/EC. The manufacturer must prepare a technical file, conduct a risk assessment, ensure conformity with essential health and safety requirements, and issue a Declaration of Conformity. Annex IV high-risk machinery (e.g., presses, woodworking machines) requires a Notified Body.
SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) is India's export control list maintained by DGFT. It applies when engineering goods have dual-use potential. Items usable for both civilian and military purposes. Exporters must self-classify against SCOMET Categories 0-8 and obtain a DGFT licence before exporting controlled items. The catch-all clause applies even to non-listed items if you suspect WMD end-use.
EEPC provides the RCMC required for all export incentives, access to buyer-seller meets and India Engineering exhibitions, market intelligence, Certificate of Origin issuance, trade dispute resolution, and participation in government trade delegations. RCMC validity is 5 years, renewable online.
The India-Japan CEPA (zero duty on many machinery items), India-Korea CEPA (reduced duties on auto parts and machinery), India-UAE CEPA (preferential access for steel and machinery), India-ASEAN FTA, and India-Australia ECTA. Savings range from 5-15% on MFN duty rates. Always verify Rules of Origin compliance and obtain the correct preferential Certificate of Origin.
Key schemes include RoDTEP (0.5-4.3% of FOB), Duty Drawback, EPCG (zero-duty capital goods import against export obligation), Advance Authorisation (duty-free raw material import), Interest Subvention (3-5% on export credit), and PLI for capital goods (4-6% on incremental sales). EPCG is especially valuable for engineering units needing expensive machinery.
ISO 9001 is virtually mandatory. Beyond that, buyers commonly require mill test certificates (EN 10204), third-party inspection reports, calibration certificates from NABL-accredited labs, and product-specific certifications (ASME for pressure vessels, API for oil & gas equipment, PED for EU pressure equipment). NDT reports (radiography, ultrasonic) are standard for critical components.
Use ISPM-15 heat-treated wooden crates/pallets, VCI wrapping for machined surfaces, moisture barrier bags with silica gel, proper lashing and bracing, and weight/CoG marking. For over-dimensional cargo, use flat-rack or open-top containers. Project exports may require breakbulk shipping. Non-compliant wood packaging will be quarantined or rejected at destination ports.
Simplify your export compliance
Seasaw automates trade compliance for Indian goods exporters. HS classification, duty calculations, FTA origin checks, SCOMET screening, and export documentation. Built for engineering goods exporters who ship to multiple markets.
Try Seasaw free
Related guides & tools
Tool
FTA Duty Calculator
Compare MFN vs preferential duty rates across India's FTAs
Guide
Certificate of Origin
Rules of Origin, preferential vs non-preferential CoO, issuing authorities
Guide
EPCG Scheme
Zero-duty capital goods import for exporters
Guide
Advance Authorisation
Duty-free import of raw materials for export production
Guide
Export Finance
Pre/post-shipment credit, ECGC insurance, buyer's credit, and Interest Subvention
Sources
EEPC India annual reports and trade data. DGFT Foreign Trade Policy 2023 and Handbook of Procedures. DGCI&S (Directorate General of Commercial Intelligence and Statistics) export figures. EU Machinery Directive 2006/42/EC and PED 2014/68/EU. ATEX Directive 2014/34/EU. SCOMET list. Appendix 3 of Schedule 2 of ITC(HS) Classification. Wassenaar Arrangement dual-use list. RBI Master Direction on Export of Goods and Services. CBIC Customs Tariff and RoDTEP schedule.